The Foley council authorized the payment of general obligation warrants series 2021-B during the July 19 meeting. During November 2020, the council voted to begin the program and to have the bonds prepared and validated through the court. Then, the city waited before making the next move.
“A few months ago, the council gave the approval to go to market to refinance a portion of our bonds, and we were kind of waiting for a time period when the market looked good for that,” said City Administrator Mike Thompson. “About a week ago the market turned and it was looking really good, and so we were able to go into the market and refinance a portion of our bonds, and it came out well.”
The city refinanced bonds earlier this year as well, during February.
“The market changed very suddenly, and thankfully we were watching it,” said Heyward Hosch, III with Maynard Cooper. “Because everything was in place since November, we were able to move very quickly.” According to Hosch, the process began on July 6 and the bonds sold on July 13. A closing date is set for July 29.
The City of Foley saved over one million dollars, approximately $1.1 million present value, or over five percent of the amount the city is refinancing.
“The staff worked really hard, and the fact that council got Heyward to basically set up the mechanism last fall really gave flexibility to do this really quickly, and it made good results,” said Mayor Ralph Hellmich. “This bond and other refinancing has saved over $2 million for the city.”